Jamison is pursuing legal action against tenants at its City Center on 6th mall in Koreatown for alleged unpaid rent, even as the firm works to stabilize its broader real estate portfolio. According to court filings, the landlord claims Handhin Pocha owes $71,250 and a clothing store, Moii, owes approximately $27,000. These filings coincide with a period of debt restructuring for the company, which recently refinanced a $50 million loan on the mall property.
Legal disputes at City Center on 6th
In early June, Jamison filed a complaint alleging that the comfort food restaurant Handhin Pocha failed to pay rent. The landlord is seeking the $71,250 balance, plus a daily fee of $965 dating back to June 1. A subsequent lawsuit filed by the company targets the store Moii, claiming roughly $27,000 in arrears plus $168 per day starting July 1. Neither the owners of Moii nor a representative for Jamison provided immediate comment regarding the claims.
Refinancing and debt management
The mall’s financial standing has shifted significantly this year. The property’s $50 million loan previously entered special servicing, which the firm described in January as a “strategic decision in an effort to obtain an extension to work out a refinance.” By late March, the debt was paid off without loss after Jamison secured a new loan through Wells Fargo, replacing a $55 million 2015 loan from German American Capital Corporation, according to Morningstar Credit data. While the mall’s debt is settled, other properties sponsored by Dr. David Lee remain in special servicing, with total debt estimated at $170 million. Garrett Lee, who recently took the corner office after his sister Jaime Lee stepped down, is currently managing this balance sheet transition.
Broader market pressures
Landlords and lenders across Los Angeles are increasingly turning to litigation to recover funds. Metlife has initiated a move toward foreclosure on a private equity-backed office tower, alleging that Rockpoint defaulted on an around $164 million loan after failing to repay an about $2 million protective advance for property taxes. Similarly, the special servicer Rialto is seeking a receiver and foreclosure against Redcar, alleging a $15 million default on creative office space in Chinatown. These actions reflect a wider trend of lenders seeking control of assets through receivership as default disputes mount.
Developments at the Graffiti Tower and EY Plaza
The unfinished complex known as the “Graffiti Tower” remains a point of contention. According to a report by The California Post, Dr. Kali Chaudhuri intends to activate 700-foot LED signage on the structure to generate revenue. The City of Los Angeles has formally objected to a credit bid from KPC and Lendlease for the site, citing a lack of detailed development plans and a focus on the LED signage instead of completing the project. Meanwhile, at the downtown office tower EY Plaza, a receiver has secured a lease for the building’s entire second floor, raising occupancy to nearly 64 percent, per Morningstar commentary.
Outlook for Los Angeles commercial real estate
The industry continues to respond to the impact of the city’s Measure ULA, often referred to as the “mansion tax.” Sean Burton of Cityview, who recently opened the 265-unit Apollo project in the South Bay, previously stated that the tax made development within Los Angeles city limits unfeasible. With attempts to repeal or amend the tax stalling, developers and landlords may continue to seek opportunities in areas outside the city’s immediate jurisdiction or focus on stabilization strategies for existing assets, as seen with the recent leadership transition at Jamison.
